Pension funds will have more time to prepare. During the Senate debate, Schouten pledged that the funds will have to transition to the new system no later than January 1, 2028, one year after the previous deadline. Furthermore, it is still possible to decide to further postpone this deadline.
‘important step’
Schouten calls it “an important step.” “With this law we make sure that our pension stays organized properly,” said the minister. According to Schouten, this applies to people who have already retired, but also to people who are still working now and for future generations. In the new system, the accrual of pensions will be more personal than in the current system, which is based on a collective fund.
The new pension system has been discussed for years, first between employers and trade unions, then in the House and the Senate. Schouten says he feels a “great responsibility” for a careful transition.
Dutch pension assets (in the hundreds of billions) are moving from a collective fund to largely individual funds. Switching to this new way of accruing pensions can cost tens of billions and it is not yet fully understood how the new system will work for specific funds. However, many parties see that the pension system in its current form is no longer up to date. The new system is more flexible and better suited to the current labor market. In times of economic prosperity, more pensions can be paid more quickly and cuts are made sooner in the event of poor stock market results.
Delay
Opponents of the new system have tried to organize a last-minute postponement of treatment. PS Senator Tiny Kox underlined the effect of the new law on the pension scheme for political office holders, including MPs themselves. That’s why a two-thirds majority is required under the constitution, says Kox, which has not even been achieved in the House of Representatives. Proponents of the law say it is simply a technical adjustment that does not directly affect MPs and other office holders.
Pension funds: act now
The pension funds are delighted that the law for the new pension system has now also been adopted by the Senate. The time has come to accelerate the implementation of all changes, says the umbrella organization Pensioenfederatie.
“We have been preparing for a long time, but from now on we can really make decisions together with the social partners,” says Ger Jaarsma, president of the Pensioenfederatie, the umbrella organization of almost all pension funds in the Netherlands. ‘As pension funds in the Netherlands, we are happy with this result, which means we can start implementation on 1 July.’
The Dutch Insurers Association expects the new system to be easier to explain. ‘I expect this will increase the involvement and influence of the participants. Pensions will become less and less of a sight away from my bed,’ says Richard Weurding, managing director of the insurers’ trade association.
New Senate
The vote and treatment of the pension bill in the Senate has not been entirely without controversy. On Tuesday, voting day, the new Senate was also elected by, among others, members of the Provincial Council. The new Senate will be sworn in in two weeks. Opponents believe the new Senate should have considered the law. Proponents of the law also have a majority in the new Senate.